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TMI BlogLiability and applicability of service taxX X X X Extracts X X X X X X X X Extracts X X X X ..... Dear Sir, A proprietory firm gets order from a ltd. co. to 'prefabricate,sell and hand over Manhole/Handhole as per specifications drawings given by ltd.co. i)Raw materials like cement,steel etc are 100% to be purchased by proprietory firm(i.e.processor ). ii)Proprietory firm gets this work done through contract labourers. iii)Finished goods to be delivered at site of ltd.co. iv)sales price is f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ixed by ltd.co which is inclusive of material cost+ fabrication cost + transportation cost)excluding service tax. v)Activity of fabrication is done only on such orders.It is not a regular business.If order gets cancelled then 'Manhole/Handhole may or may not be saleable in open market. Query:1)Whether above activity of proprietoy firm is subjected to ser.tax or excise duty ? ii)sales price is incl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... usive of transportation.Who isliable to ser.tax ? - Reply By Surender Gupta - The Reply = From the query it appears that the transaction is liable to excise duty and not service tax. And once, it is decided that the activity is manufacturing activity and liable to excise duty, the burden of discharging excise duty is on the Manufacturer i.e. proprietory firm. However, the same may also be eligib ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... le for SSI exemption. - Liability and applicability of service tax - Query Started By: - sunil mehta Dated:- 18-12-2007 Service Tax - Got 1 Reply - Service Tax - Discussion Forum - Knowledge Sharing, reply post by an expert, personal opinion Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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